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TSIF's Play of the Day -- ORS

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June 28, 2011 – Comments (7) | RELATED TICKERS: ORSX

It still amazes me that speculators...errr..I mean investors....would continue "falling" for these.  This one just about pegs the Foolish meter.

Orsus Xelent Technologies, Inc., together with its subsidiaries, engages in the design, manufacture, and distribution of cellular phones for retail and wholesale distribution in the People's Republic of China.  This is not a hard business to understand and unlike many of TSIF's Play of the Day, this is not a reverse merger OB equity nor is it a biopharm with data pending.

Orsus Xelent's share price on April 27th was $0.70 and that was generous. $2 On June 8th appeared to be a possible misunderstanding of the earnings report. 

Over $7 on June 14th; $3 on June 17th;  $5.85 today.

The GeoTeam on Seeking Alpha seems to try to explain the initial share price movement up to $2.

A reported EPS of $12.83 per share was the result of a one time writeoff, or a non-cash gain.  The real EPS was a loss. 

IN actuality the company continues to warn that they need a merger or capital raise to continue. Orsus has also gotten a letter from the NASDAQ that they face delisting as they have less than $2 Million in Stockholder Equity.  The article also cites difficulty even finding Orsus headquarters.

The company agreed that their website was incorrect

  The website of Beijing-based Orsus-Xelent (ORS.A) listed phone numbers that were disconnected and addresses that belonged to other businesses, including Orsus's former investor relations firm in New York

The really funny part..(you gotta find some humor somewhere).....the CFO....yes CHIEF Financial Officer commented on the incorrect addresses.... 

  "Commenting on the inaccuracies of the website, Hua said he didn't know too many details about the company because he hadn't been there that long -- in his current position for a little more than a year."

Digging into the 23 May, 10-Q....we find the company started as "State of Delaware in May 2004 under the name "Universal Flirts Corp"...... No explaination of what a FLIRT is/was, but apparently it wasn't a successful business.

On April 19, 2005, the Company, formerly known as Universal Flirts Corp., changed its list name to Orsus Xelent Technologies, Inc.

One key to the current volitility is the 12:1 Reverse stock split Orsus did. This left the equity with a scant 2 Million shares with only 2% held by insiders and none by institutions.   Since June 7th, every share has traded hands the equivalent of 12 TIMES!!!!

Orsus has essentially one customer, had only $6,000 in selling expenses and $24,000 in general expenses, but $120,000 in interest expenses.  They are in default on their loan. Over $94 Million in receivables, of which $38 Million was determined to be BAD.

"The Company did not pay salaries and welfare to employees in the first quarter of 2011 due to a difficulty in cash flow."

WOULD you pay $7 per share for this???    How about $5??  Do I hear $2???   How about $0.02..... NOT ME!

Any purchase of a share of Orsus is not even speculating..... it's just plain FLIRTing with stupidity!  (NO insult intended if you own or temporarily touched one of those 2 Million shares this past week).

7 Comments – Post Your Own

#1) On June 29, 2011 at 5:21 PM, rhallbick (99.64) wrote:

 for your amusement

Universal Flirts Corp

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#2) On June 29, 2011 at 9:28 PM, TSIF (99.96) wrote:

Priceless!!!    Started at $0.05 per share and it appears to be worth less now!!!!  ;)

 Snippets, it's full of great stuff!!!!  Could have been a eHarmony, DATE or RENREN with only a "little bit" of luck!

  Thanks for the link rhallbick...I stopped with the more recent filings and missed this gem!!!! 

 

=======================

 Universal Flirts, Inc. was incorporated on August 22, 2003, and launched its first website, www.Americanflirts.com, in late 2003. American Flirts is an online dating service dedicated to helping American Singles find love and romance. We presently offer complete access to all of the sites features for free.

Darrell Lerner's ownership of eTwine.com may be a conflict of interest as eTwine.com may become a competitor in our industry.

We have generated $34.35 in revenues since our inception, and we have a total accumulated deficit of $50,793. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern.

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#3) On June 29, 2011 at 10:31 PM, Gonzhouse (73.03) wrote:

At one time in 2007, ORS was at $90/share.  Not a misprint: Ninety Dollars.  Dropped all the way to $1, rebounded to $7 due to no discernable reason, and now bouncing along in mid single digits.  The only attribution I can think of is "You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time. by Abraham Lincoln."

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#4) On June 30, 2011 at 4:00 PM, RRobertsmith (< 20) wrote:

This stock is down in an up market, looks like TSIF hit a 2 base hit on this one, if not a home run. Reverse stock split is like throwing blood in the water for the sharks, can we schedule a bear picnic on this one?  

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#5) On June 30, 2011 at 7:57 PM, TSIF (99.96) wrote:

This one is showing patterns of a homerun.  But then again, TMFBabo's Phillies humbled my Red Sox, so maybe my hit will be called back,  the game here isn't over yet.......either way something here is Foul and Bears have taken the helium out of this one.

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#6) On July 21, 2011 at 11:04 AM, shamapant (78.42) wrote:

NICE call, look at it now and you know it has to fall more...you've been proved correct, and every day you're getting more correct.

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#7) On July 21, 2011 at 8:39 PM, TSIF (99.96) wrote:

It's hard to call bottom, the market cap is down to $7 Million. Normally, I'd exit after a 50% gain, book it and reenter on a slight bounce if I can find one.  In this case, I suspect it's not pickable due to market cap if I close it. There's a chance they could collect some receivables and bounce up, but even at today's price they are triple where they started thier misguided run.  I thought it would drop faster, but the bagholders were in denial.  The reminder that their listing is in doubt woke a few up.

The key is not to get greedy, but I think this one can be safely ridden down considerably further.  Looks like it's your best call to date!   It might be risky to ride it down to the 90% level and try to get the bankruptcy charm, you might find better candidates for that, but a little help from the S&P going up might do it. 

Thanks and good luck.

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